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Home Business & Finance
UAE Ramps Up Second Pipeline Project To Reduce Hormuz Dependence

UAE Ramps Up Second Pipeline Project To Reduce Hormuz Dependence

Ayobami OwolabibyAyobami Owolabi
2 months ago
in Business & Finance
Reading Time: 2 mins read
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Abu Dhabi is pushing ahead with plans to fast-track construction of a new West-East oil pipeline to Fujairah as the United Arab Emirates seeks to strengthen its export capacity and reduce dependence on the Strait of Hormuz.

The new pipeline, which is expected to begin operations in 2027, is projected to double the export capacity of the Abu Dhabi National Oil Company (ADNOC).

The expansion comes at a time when global energy markets continue to face pressure, while tensions affecting the Strait of Hormuz and repeated attacks on regional energy infrastructure have disrupted oil flows and limited the UAE’s ability to restore full production levels.

On Friday, Abu Dhabi Crown Prince Khaled bin Mohamed bin Zayed Al Nahyan called for accelerated work on the project in order to meet growing international demand for energy supplies.

UAE Ramps Up Second Pipeline Project To Reduce Hormuz Dependence

ADNOC is “well positioned as a responsible and reliable global energy producer, with the operational flexibility to responsibly increase production to meet market needs when export constraints allow,” the Crown Prince said during a meeting of the company’s executive committee.

The UAE recently announced plans to leave the Organisation of the Petroleum Exporting Countries (OPEC), a group it joined in 1967 before the country’s formal establishment. Over the years, the UAE has continued to invest heavily in ADNOC to boost its oil production capacity.

Before the conflict affecting regional energy infrastructure, the UAE was producing slightly above 3 million barrels of oil per day, largely in line with OPEC+ production targets. Abu Dhabi had aimed to raise its output capacity to 4.9 million barrels per day.

However, current production has reportedly dropped to between 1.8 million and 2.1 million barrels daily due to the ongoing disruptions.

At present, the Abu Dhabi Crude Oil Pipeline (Adcop), also known as the Habshan-Fujairah pipeline, remains the UAE’s only export route that bypasses the Strait of Hormuz. The existing pipeline has a transport capacity of up to 1.8 million barrels per day.

Tags: federal characterHormuzNewsSecond Pipeline ProjectUae
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Ayobami Owolabi

Ayobami Owolabi

Owolabi Ayobami is an emerging entertainment journalist, dedicated to delivering the latest scoop on Nollywood, music, and celebrity culture. With a keen eye for detail and a passion for storytelling, he brings fresh insights and perspectives to the entertainment beat.

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